[ine tollowing information applies to the questions displayed below. Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $14,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 10,000 1,900 Year 2 $ 465,000 (64,000) (80,000) (60,000) (40,000) (50,000) 18,500 4,800 (1,000) $ 193,300 $ 50,000 $ 184,900 $ 28,000 c. Complete Julio's 1120-S, Schedule K-1, for year 1. Employer Identification Number: Falcons Corporation EIN: 58-1111111 S Corporation EIN: 59-2222222 Shareholder's identifying number: 111-11-1111 Prepare Form 1120-S. Schedule K1 Schedule K-1 for Form 1120-S. Amended K-1 OMB No. 1545-0123 Final K-1 Part III Schedule K-1 2020 Shareholder's Share of Current Year Income, (Form 1120-S) Department of the Treasury Deductions, Credits, and Other Items Ordinary business income (loss) 13 Credits For calendar year 2020, or tax year 1 Internal Revenue Service 2020 beginning ending ,20 2 Net rental real estate income (loss) DeuucLUIS, LIEUILS, anu Vuel TENS Ordinary business income (loss) 13 Credits 1 Trumm T120-3) Department of the Treasury For calendar year 2020, or tax year Internal Revenue Service beginning 2020 ending ,20 Shareholder's Share of Income, Deductions, Credits, etc. See back of form and separate instructions. 2 Net rental real estate income (loss) 3 Other net rental income (loss) 14 Foreign transactions 4 Interest income Partl Information About the Corporation A Corporation's employer identification number 5a Ordinary dividends B Corporation's name, address, city, state, and ZIP code 5b Qualified dividends 6 Royalties CIRS Center where corporation filed return 7 Net short-term capital gain (loss) 8a Net long-term capital gain (loss) Part II Information About the Shareholder D Shareholder's identifying number 8b Collectibles (28%) gain (loss) 15 Alternative minimum tax (AMT) items E Shareholder's name, address, city, state, and ZIP code 8c Unrecaptured section 1250 gain 9 ) Net section 1231 gain (loss) 10 Other income (loss) 16 Items affecting shareholder basis F Current year allocation percentage % D G Shareholder's number of shares Beginning of tax year End of tax year 11 [ine tollowing information applies to the questions displayed below. Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $14,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 10,000 1,900 Year 2 $ 465,000 (64,000) (80,000) (60,000) (40,000) (50,000) 18,500 4,800 (1,000) $ 193,300 $ 50,000 $ 184,900 $ 28,000 c. Complete Julio's 1120-S, Schedule K-1, for year 1. Employer Identification Number: Falcons Corporation EIN: 58-1111111 S Corporation EIN: 59-2222222 Shareholder's identifying number: 111-11-1111 Prepare Form 1120-S. Schedule K1 Schedule K-1 for Form 1120-S. Amended K-1 OMB No. 1545-0123 Final K-1 Part III Schedule K-1 2020 Shareholder's Share of Current Year Income, (Form 1120-S) Department of the Treasury Deductions, Credits, and Other Items Ordinary business income (loss) 13 Credits For calendar year 2020, or tax year 1 Internal Revenue Service 2020 beginning ending ,20 2 Net rental real estate income (loss) DeuucLUIS, LIEUILS, anu Vuel TENS Ordinary business income (loss) 13 Credits 1 Trumm T120-3) Department of the Treasury For calendar year 2020, or tax year Internal Revenue Service beginning 2020 ending ,20 Shareholder's Share of Income, Deductions, Credits, etc. See back of form and separate instructions. 2 Net rental real estate income (loss) 3 Other net rental income (loss) 14 Foreign transactions 4 Interest income Partl Information About the Corporation A Corporation's employer identification number 5a Ordinary dividends B Corporation's name, address, city, state, and ZIP code 5b Qualified dividends 6 Royalties CIRS Center where corporation filed return 7 Net short-term capital gain (loss) 8a Net long-term capital gain (loss) Part II Information About the Shareholder D Shareholder's identifying number 8b Collectibles (28%) gain (loss) 15 Alternative minimum tax (AMT) items E Shareholder's name, address, city, state, and ZIP code 8c Unrecaptured section 1250 gain 9 ) Net section 1231 gain (loss) 10 Other income (loss) 16 Items affecting shareholder basis F Current year allocation percentage % D G Shareholder's number of shares Beginning of tax year End of tax year 11
